Correlation Between Nanjing Putian and Hunan Investment
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Hunan Investment Group, you can compare the effects of market volatilities on Nanjing Putian and Hunan Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nanjing Putian with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Hunan Investment.
Diversification Opportunities for Nanjing Putian and Hunan Investment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Hunan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Nanjing Putian is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nanjing Putian Telecommunications are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Hunan Investment go up and down completely randomly.
Pair Corralation between Nanjing Putian and Hunan Investment
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.37 times more return on investment than Hunan Investment. However, Nanjing Putian is 1.37 times more volatile than Hunan Investment Group. It trades about 0.31 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.18 per unit of risk. If you would invest 188.00 in Nanjing Putian Telecommunications on September 23, 2024 and sell it today you would earn a total of 240.00 from holding Nanjing Putian Telecommunications or generate 127.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Hunan Investment Group
Performance |
Timeline |
Nanjing Putian Telec |
Hunan Investment |
Nanjing Putian and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanjing Putian and Hunan Investment
The main advantage of trading using opposite Nanjing Putian and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Hunan Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hunan Investment will offset losses from the drop in Hunan Investment's long position.Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China |
Hunan Investment vs. Nanjing Putian Telecommunications | Hunan Investment vs. Tianjin Realty Development | Hunan Investment vs. Kangyue Technology Co | Hunan Investment vs. Shenzhen Hifuture Electric |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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